China’s property stocks rose to the highest in almost three years on optimism their sales will pick up after the biggest developer traded on the nation’s stock markets said it sold more homes in January.
The Shanghai Stock Exchange Property Index advanced 4.8 percent at the close to the highest since April 16, 2010. China Vanke Co., the biggest developer on mainland exchanges, jumped 3.6 percent to 12.33 yuan in Shenzhen, while China State Construction Engineering Corp. surged 9.7 percent to 4.06 yuan, the largest advance since Oct. 14, 2009.
“Investors are expecting good sales numbers from more developers to come after yesterday’s Vanke announcement,” said Dai Fang, a Shanghai-based property analyst at Zheshang Securities Co. “In general, investors are pretty optimistic about the property sales outlook.”
Developers have put more properties on the market since the Ministry of Housing and Urban-Rural Development said in December that it would support demand from residents seeking bigger homes this year, said SouFun Holdings Ltd., the country’s biggest real estate website owner. China’s January new home prices posted the largest gain in two years, it said.
Vanke said sales rose 56 percent last month from a year ago to 19.1 billion yuan ($3.1 billion), while Shimao Property Holdings Ltd., a Hong Kong-listed Chinese developer, said sales more than quadrupled to 4.1 billion yuan. Evergrande Real Estate Group Ltd., China’s biggest developer by sales volume, said its January sales more than tripled.
Land sales in China’s 10 major cities jumped 263 percent to 56.2 billion yuan in January from last year, China Daily reported today, citing data from Shanghai E-house Real Estate Research Institute.